Over the past decade, impact investing has gained significant momentum as both an investment strategy and an approach to address social and environmental challenges. Impact investing is defined as investments made with the intention to generate positive, measurable social, and environmental impact alongside a financial return.
Through impact investments, investors focus on companies that promote ethical and socially responsible consciousness such as environmental sustainability, social justice, and corporate ethics. Besides, it also circles around addressing social issues including poverty, education, or an environmental issue, such as clean water. According to a survey by Global Impact Investing (GIIN), the $715B (approx €612.76B) global impact investing market is maturing, driven by better measurement and strong performance.